Enefit Energiatootmine AS (fully owned subsidiary of Eesti Energia Group) has reached a settlement with GE (including Alstom Estonia AS, GE Power Sp.z o.o and Alstom Power Systems) regarding the new Auvere power plant.
The plant was due to be handed over to Eesti Energia by GE in November 2015 but acceptance has been delayed because the plant did not fully comply with emission standards.
As part of the agreement, GE agreed to pay EUR 66 million as liquidated damages to Eesti Energia for the delay period from November 2015 until November 2016. The amount will be payable to Eesti Energia under an agreed payment schedule by July 2017. The principles for determining any additional liquidated damages related to delays were also agreed. It is currently expected that the emissions issue will be solved by October 2017. Meanwhile, the power plant will continue operating at loads where emissions standards are met.
Auvere power plant is a 300 MW circulating fluidised bed (CFB) power plant that is being constructed by GE (previously Alstom) under a turnkey EPC (Engineering, Procurement, Construction) contract. The power plant can use biofuel alongside oil shale (up to 50%) and thereby achieve lower carbon emissions. The total cost of the project is budgeted at EUR 638 million. (Energyland/Business World Magazine)
